Through displays of total assets, public wallet addresses, wallet balances, and wallet values, the tool enables users to keep tabs on exchange reserves.
What’s industry leader said about market research?
A new tool on CoinMarketCap’s website that provides users with up-to-date financial details on exchanges has been launched, according to the industry leader in market research and tracking for cryptocurrencies.
The industry’s active cryptocurrency exchanges are examined by the proof of reserves (PoR) tracker for transparency regarding liquidity at any given time. The tracker provides information about the company’s overall assets, as well as the associated public wallet addresses, balances, and values of the wallets.
Every five minutes, according to CoinMarketCap, the PoR trackers will update their data. The business tweeted a user manual for the gadget on November 22.
NEW #CMC Feature: Exchange’s Proof of Reserves 🏦
Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice.
<1/5> pic.twitter.com/HlNbUGzOYE
— CoinMarketCap (@CoinMarketCap) November 22, 2022
Which exchanges provide PoR data?
With almost $65 billion listed in its combined wallet addresses, Binance was the initial example in the five-part Twitter discussion. The following exchanges also provide PoR data: KuCoin, Bitfinex, OKX, Bybit, Crypto.com, and Huobi.
Changpeng “CZ” Zhao, the CEO and co-founder of Binance, retweeted the CoinMarketCap development and included a link to Binance’s page. On Twitter, some members of the crypto community have referred to this function as a “wonderful transparency addition.”
Following the ongoing FTX liquidity and insolvency crises, CZ was among the first to commit to providing proof of reserves.
It released a proof-of-assets on November 10 that showed wallet addresses and activities. Then, CZ stated that what is currently available is merely the initial version of what will soon be made public via Merkle Tree PoR.
Which companies to release data?
Many other platforms in the market started disclosing their financial reserve and liquidity statistics to be more transparent after Binance set a precedent. Some of the first companies to release their data were Chainlink Labs, Bitfinex, and ByBit.
Grayscale, a provider of cryptocurrency investment products, has chosen to withhold its on-chain PoR, citing security concerns. It did publish a letter from Coinbase Custody confirming the complete backing of Grayscale’s cryptocurrency holdings, but it withheld the wallet addresses.
Conclusion
CoinMarketCap’s website that provides users with up-to-date financial details on exchanges has been launched and the important part is tracker provides information about the company’s overall assets, as well as the associated public wallet addresses, balances, and values of the wallets.
